The investor update is one of the most valuable habits a founder can build — and one of the most consistently neglected. Many founders send updates only when things are going well, treat the update as a reporting obligation rather than a tool, or avoid it entirely when they're going through a difficult period. All of these are mistakes.
A well-written monthly investor update does three things: it maintains the trust of your existing investors (who are your first call when you need something), it creates a documentary record of your progress and challenges, and it actively surfaces resources, introductions, and advice from people who want you to succeed. It also pays off when you raise again: a year of consistent updates is the easiest part of preparing for a Series A.
This post covers what a good investor update contains, how to write it, and a template you can start using today.
How Often to Send It
Monthly is the gold standard for growth-stage companies. Quarterly is the minimum for any company with external investors. Annual updates are not updates — they're the statutory accounts.
Monthly updates work because they keep investors genuinely current. By the time an investor is reading a quarterly update, three months of context has been lost. They can't effectively help with something that happened in month two if they're only reading about it in month three.
The counterargument founders often make — "I don't have time to write a monthly update" — actually signals a more important issue. If you can't summarise your business's situation in 400–600 words once a month, you probably don't have the clarity about what's happening in your business that you should have.
What to Include
The most effective investor updates follow a consistent structure. Consistency matters: investors who read your update every month should know exactly where to find the numbers and the narrative without re-reading the same explanation of the format.
Subject line: Company Name — Investor Update — Month Year. Boring is correct. It should be immediately searchable in any inbox.
1. The headline (3–5 bullet points)
The most important things that happened this month. Not a list of activities — a list of outcomes. Investors read dozens of updates. Make yours skimmable.
- Closed €420k contract with [large corporate] — first enterprise account
- MRR crossed €100k for the first time — up 12% month-on-month
- Closed Bertus as VP Sales — starts 1 May
2. Key Metrics
A consistent table of your core KPIs with current month, prior month, and your target:
| Metric | This Month | Last Month | Target |
|---|---|---|---|
| MRR | €105k | €93k | €100k |
| MoM Growth | 12.9% | 8.1% | 10% |
| Customers | 42 | 38 | 40 |
| Gross Margin | 72% | 71% | 75% |
| Net Burn | €65k | €71k | <€70k |
| Cash | €340k | €405k | >€300k |
| Runway | 5.2 mo | 5.7 mo | >6 mo |
The metrics you include should be consistent month-to-month. Changing the metrics you report when numbers look bad is noticed and damages trust more than a bad number does.
3. Progress Against Goals
In last month's update, you set out what you were going to do this month. This section reports back against it — simply and honestly.
✓ Close first enterprise contract — done (€420k ACV, 2-year term) ✗ Launch pricing page redesign — not done (moved to next month) ~ Hire VP Sales — partially done (Bertus accepted, starts May)
This section builds accountability and shows investors you operate against a plan, not reactively.
4. The Narrative (3–5 paragraphs)
What's happening in the business that isn't captured in the numbers? What decisions are you working through? What's the honest state of play on the hardest thing you're dealing with?
This section is where the best updates differentiate themselves. Founders who are honest here — about the account that nearly churned, the hire that didn't work out, the pricing decision that's generating customer pushback — build far more investor trust than those who only report good news. Investors have pattern-matched on what founder-run businesses look like at your stage; they can tell when a narrative is being managed.
5. This Month's Priorities
Three to five things you are specifically committed to doing in the next 30 days. This gives investors something concrete to follow up on, and creates the accountability loop for next month's update.
- Close second enterprise prospect currently at contract stage
- Launch new onboarding flow to address week-3 churn pattern
- Complete Series A financial model with [CFO/advisor]
6. Where You Need Help
This section is optional but highly valuable. Investors want to help — they often can't because they don't know specifically what you need. Making the ask explicit turns your investor network into an active resource.
Examples:
- Looking for an introduction to Head of Procurement at [target company]
- Need a recommendation for an employment lawyer experienced with option schemes
- Looking for finance director candidates who've done a Series A before
What Not to Include
Everything. An investor update that covers every meeting, every feature shipped, every conversation with every prospect is not an update — it's a log. Filter ruthlessly. Include what changed the business or what tells the financial story.
Spin. Investors are experienced. They can usually detect when a narrative is being crafted to avoid saying something. A miss that's acknowledged and explained builds trust. A miss that's wrapped in a lot of positive framing and then quietly mentioned damages it.
A one-time format change when things are going badly. If your updates were 500 words with a clear numbers table for six months, and then suddenly become three paragraphs with no numbers table, investors will notice. Bad periods require more clarity, not less.
A Template You Can Use
Subject: [Company Name] — Investor Update — [Month] [Year]
Hi [names],
Three things this month:
- [Most important positive development]
- [Most important challenge or honest status]
- [Something about the team or product]
Metrics: [Insert your standard KPI table here]
Progress vs last month's goals: [✓/✗/~ against each item from last month]
What's happening: [3–4 paragraphs of honest narrative on the business situation]
This month's priorities:
- [Specific, measurable commitment]
- [Specific, measurable commitment]
- [Specific, measurable commitment]
Where I could use help:
- [Specific ask]
Onwards, [Name]
Frequently Asked Questions
Should I send updates even when things are going badly? Especially when things are going badly. Investors who learn about a crisis from the update can help. Investors who learn about it when you're asking for an emergency bridge feel ambushed. Consistent, honest communication through difficult periods is the best credit you can build with your cap table.
What if I have investors at different stages (angels, institutional)? Most founders send a single update to all investors. Some segment: a more detailed version to lead investors and board members, a summary version to angels. Either works. Avoid the temptation to send different narratives to different investors — it creates information asymmetry that eventually causes problems.
How long should it be? 400–600 words plus the numbers table. A good investor update takes 45–60 minutes to write once you have a template and the data to hand. It should take 5–10 minutes to read.
BB Financial Services Kft helps founders prepare board and investor communications — including monthly update infrastructure, financial data packages, and board pack preparation. Get in touch if you'd like support with investor reporting.
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